In the financial world both money and credit are interchangeable.
One can stand in for the other creating a very necessary substitute
when needed. This happens many times in consumer and business
financial transactions everyday.
For the sake of this article money is credit and credit is money.
Much effort is put forth in legally obtaining and pursuing money
thru some worthwhile endeavor. The same is true for credit and credit
history. It requires time and consistent effort to create and maintain a
healthy thriving credit history that will be used at some point as a form
of intangible currency in the marketplace.
Some still maintain that cash is king, however in the U.S. Economy in
many transactions credit is the only medium used. Getting a hotel,
renting a rental car and all online e-commerce use credit as a preferred
source of payment. Most if not all businesses extend credit whether buyers or suppliers via procurement channels and accounts receivables.
It is quite evident now and the case is solid and validated that credit is
another form of money or currency. Credit has immense monetary value
and a preferred status the world over. The is well understood and accepted
practice in the banking and lending arenas.
What is the best means by which consumers can gain from the intangible
monitization of credit? A first goal would be to discover the monetary value
of their credit.
What would be the source of discover? Use a open free market auction and
bidding process, thus allowing the free market to establish the value of ones
credit monetary value in real time.
Who would qualify as bidders? Banks, lenders, mortgage brokers and credit
card issuers, etc.
Are there immediate benefits for the consumer? Yes!
A free no hassle user friendly auction and bidding process
Empowering consumers to leverage their credit in the marketplace
Possibly lowering interest rates through online auction bidding
Defining the true monetary value of consumers credit
Helps consumers save money
What are the benefits for the financial community? Create a paradigm shift
in the way lending is carried out within the consumer space. Offer innovative
solutions, meaning give the consumers what they really want and that is value.
Make every transaction a value transaction therefore using processes that
produce fair value transactions (FVT).
Once consumers experience a whole new world of fair value transactions(FVT)
this would become a catalyst to motivate and inspire all consumers to maintain
more viable credit histories. This would have a generational effect as well
particularly with young future users of credit. End result a win-win for all consumers and lenders.